Africa-Press – Eswatini. The Eswatini Competition Commission has approved four mergers.
This was revealed in a report which highlights that the total transactional value of international transactions notified and approved during the quarter stood at approximately E625 million, while the total transactional value for domestic transactions was approximately E1.6 billion.
“The total combined annual turn-over of both international and domestic transactions stood at approximately E2.7 billion,” reads the report.
It further states that the sectors of these transactions include commercial property, farmland, poultry and automotive sectors in Eswatini.
The commission examines merger notifications, in order to make a determination on the effects of transactions on competition and then either gives approval without any conditions or subject to specific conditions or prohibits the transactions based on the outcome of the analysis.
“This function is supported by Section 35 of the Act and the Competition Commission Regulations Notice, 2010 as well as internal and external merger guidelines,” reads the statement.
The commission approved the acquisition by K202367843 (South Africa) (Pty) Ltd of the entire issued share capital of Danny’s auto body parts (Pty) Ltd and the indirect acquisition of the entire issued share capital of Danny’s Auto Property Holdings Proprietary Limited.
The report indicates that the acquiring firm is K202367843 (Pty) Ltd, a private company registered under the laws of South Africa, which has its principal place of business at 11 Alice Lane building 2, Sandton South Africa 2196 is a newly established investment holding company and does not conduct any business activities.
“The target firms Danny’s Auto Body Parts (Pty) Ltd and Danny’s Auto Property Holdings Proprietary Limited are based in South Africa and have no physical presence or assets in Eswatini,” reads the report.
It defines Danny’s Auto as a private company incorporated in accordance with the company laws of South Africa with its principal place of business at 77 Marlborough Road, Springfield Johannesburg, South Africa 2190.
“Danny’s Auto is a wholesaler of high-quality aftermarket automotive parts and accessories for various vehicle types in Southern Africa; and exports products from South Africa to customers in Eswatini. In particular, Danny’s Auto is an authorised reseller for premium brands including Dunlop, Lucas and FIAMM, in addition to its own in-house developed brand, Imoto Chemicals.,” reads the report.
It explains that although the company does not have a physical address in the country, it supplies these brands to Eswatini, distributing a portfolio of unbranded products to both wholesalers and retailers that want to rebrand and package their own products.
“The commission considered the products of these firms and concluded that the relevant market is the supply of aftermarket automotive parts in Eswatini,” reads the report.
It says through its analysis, the commission considered the activities of the merging parties and found no overlaps in their operations in the relevant market and that pursuant to the implementation of the proposed transaction, SPE BidCo will acquire control over Danny’s Auto and Danny’s Auto Property.
“Post-merger, the market shares in the relevant market, market concentration, countervailing power and barriers to entry will not be affected hence the transaction is unlikely to result in the substantial lessening or prevention of competition,” reads the statement.
Thus the transaction was approved without conditions.
Another transaction that was approved without conditions was the acquisition by Richmond Estates (Pty) ltd of 100 per cent issued shares of Batch Farms (Pty) Ltd.
“The acquiring firm is Richmond Estates (Pty) Ltd, a company incorporated in terms of the laws of Eswatini which is in the business of commercial farming in the Lubombo Region. It undertakes sugar cane cultivation at its farm in Nsoko area by way of a quota granted by the Eswatini Sugar Association,” reads ther eport.
It states that the target firm is Batch Farms (Pty) Ltd, a company incorporated in terms of the laws of Eswatini and owns Portion 5 (a Portion of Portion 1) of farm No. 539, situate in the Lubombo Region and measuring 393.3 hectares is also in the business of commercial farming that cultivates sugar cane in Big Bend by way of a quota granted by the Eswatini Sugar Association.
“The commission considered the products of the merging firms and concluded that the relevant market is sugar cane cultivation in the Lubombo Region. The transaction was approved without conditions,” reads the statement. Also approved without conditions was the acquisition by the Rochats of 100 per cent issued shares of Ponderosa Farm (Pty) limited.
“The acquiring parties are the Jane and Mark Rochat, who are citizens of Eswatini and residents of Malkerns in the District of Manzini, Eswatini,” summaries the report.
The report further indicates that the target firm, Ponderosa Farm (Pty) Limited is a property holding company incorporated in terms of the laws of Eswatini.
“Ponderosa is a non-trading entity which owns Portion 4 of farm 1159 measuring 25.7355 (Twenty-Five point Seven Three Five Five) hectares in Malkerns District of Manzini, Eswatini . The farm has buildings which provide accommodation for bed and breakfast services in Malkerns,” reads the report.
It also highlights that the commission considered the products of the firms and concluded that the relevant market is the provision of Bed and Breakfast (“B&B”) services in Malkerns. The transaction was therefore approved without conditions.
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